Gas prices in Tennessee have remained relatively stable over the past week, with a slight increase of just one cent compared to the previous week, as reported by AAA. The current statewide average stands at $2.57 per gallon, positioning Tennessee as the 12th least expensive state for gas in the country.
When compared to a month ago, the average price has decreased by 12 cents, and it is also six cents lower than the same time last year. According to AAA, residents of Tennessee are currently experiencing the lowest gas prices seen in four years. Megan Cooper, a spokesperson for AAA, indicated that while prices may experience minor fluctuations during the holiday season, they are anticipated to remain low through the end of the year, offering some relief to those traveling for the holidays.
As Christmas approaches, drivers in Tennessee are paying prices comparable to last year, but notably, they are 12 cents lower than the average on Christmas Day 2024, which was recorded at $2.69. Should prices stay below this threshold, Tennessee could witness its most affordable Christmas gas prices since 2020, when the average was $2.03 per gallon.
On a national scale, the average price of gas has decreased by five cents over the past week, now sitting at $2.90. Prices have consistently remained below the $3 mark since early December and are lower than the average of $3.04 during last year’s holiday season.
The Energy Information Administration has reported an increase in gasoline demand, which rose to 8.45 million barrels per day last week. Additionally, the total domestic gasoline supply has grown to 220.8 million barrels, although gasoline production has seen a slight decline, averaging 9.6 million barrels per day.
In the oil markets, West Texas Intermediate crude oil closed at $58.46 per barrel after a modest rise. Meanwhile, U.S. crude oil inventories have decreased by 1.8 million barrels, remaining approximately four percent below the five-year average.
Examining the various markets within Tennessee, the highest gas prices were found in Nashville at $2.64 per gallon, followed by Jackson at $2.61, and Cleveland at $2.59. Conversely, the most affordable prices were recorded in Clarksville at $2.42, with Morristown and Chattanooga closely following at $2.47.
As a note, the Tennessee Weekly Gas Price Brief will take a break for the holiday season and will resume on Monday, January 5.